First it was skill games, then Internet sweepstakes cafes, and now “electronic raffles.”

During the past year, while state lawmakers were debating, and eventually passing, legislation
to clamp down on Internet cafes in Ohio, 532 new electronic raffle machines were installed at
veterans posts and fraternal lodges across the state. At least 200 were added in the first six
months of this year, some as recently as June.

The machines are labeled for charitable purposes, but they are strikingly similar to electronic
slot machines, so much so that Attorney General Mike DeWine determined in April that they
constitute illegal gambling. He told the organizations that operate the machines — AMVETS, VFW,
American Legion, Eagles, Elk and Moose — that they would have to remove them by Aug. 1 unless the
state law is changed.

However, DeWine relented on the deadline after a recent conversation with Ohio Senate President
Keith Faber, R-Celina, who told him that lawmakers plan to “clarify” the law when they return to
Columbus after Labor Day.

“We do not intend to start vigorously enforcing the law,” DeWine told
The Dispatch. “But this can’t go on forever. There’s an anticipation the legislature will
take action, but if they do nothing, we will have no choice.”

Veterans posts and fraternal lodges have complained that the Internet cafes are in direct
competition with them and are siphoning money.

DeWine said he wants legal “parity” between electronic raffles and Internet cafes, which offer
customers who buy phone cards or Internet time the chance to win money on casino-style games played
on computer terminals. A new law, which will take effect next month unless a referendum campaign
now underway is successful, would limit Internet cafe payouts to $10.

Pete Thomas, chief of the charitable section of DeWine’s office, said the enforcement action
against the raffle machines would involve using bingo licenses regulated by the state as leverage
to order removal of the illegal electronic games.

How the law would be changed to prevent that remains unclear.

Mitch Given, a Columbus lobbyist representing the Ohio Veterans and Fraternal Charitable
Coalition, said a group of senators met informally last week to discuss legislation that could be
introduced next month. He said the main idea would be to allow veterans and fraternal groups to “
play the same games they’re now playing on paper, but in video form.”

He said the posts and lodges used the games to raise nearly $4.6 million in the past two years,
half of which went to charities.

Given said a comparison with electronic raffle machines and Internet cafes is unfair.

“The cafes are totally separate. We feel that what the posts and lodges are doing is legal. But
we want to clarify the law so there is no question and they don’t need to be constantly looking
over their shoulder.”

A single company, Charitable Management and Capital Group, which has an office at 5095
Westerville Rd., provides the machines and central computer server for all games in the vets posts
and fraternal lodges.

A principal in the company, Alfred S. DeLeon, a South Carolina businessman, popped up in Ohio
gambling circles during former Attorney General Marc Dann’s short stint in office. In 2007, DeLeon
operated a skilled-games company, Castle King LLC, that was in a legal fight with the state over
the right to operate its games. Dann struck a deal with Castle King to allow its games to be played
legally in Ohio, but the deal later fell apart.

Dann attended a fundraiser put on by gambling interests at the Brewery District office of an
attorney representing DeLeon’s company. Michael W. DeLeon, the brother of the Castle King
executive, donated about $1,000 in food and drinks for the fundraiser, from which Dann netted about
$7,500 for his campaign fund.